Thailand

For foreign companies making taxable supplies in Thailand, there may be a statutory obligation to register for VAT.  Once registered, non-resident traders must comply with local filing rules (see Thailand VAT Compliance section below).

Typical situations requiring a VAT registration in Thailand include:

• Where goods are delivered within Thailand;
• If the foreign trader imports, installs or assembles goods in Thailand;
• Export of goods from Thailand; and
• Supply of services where the place of supply is Thailand.

There is an annual VAT registration threshold of  THB 1.8 million per annum. It is not compulsory to register if your annual sales turnover is below this amount; however it is possible to apply for a voluntary registration.

A foreign company may register for a temporary VAT number, under Section 82/3 of the Revenue Code, without the requirement to form a local company, provided the VAT registration remains open for 12 months and not more than three years; however they must appoint a VAT fiscal representative. The representative and company are jointly liable for the reporting and payment of VAT to the Thai authorities. In addition, the agent is responsible for all communications between the company and the Thai tax authorities.

The foreign company is required to use a registered office address in Thailand.  In addition, the temporary non-resident shall be deemed as having a permanent establishment in Thailand; however, the temporary non-resident shall be deemed as having a permanent establishment in Thailand.  Therefore, it will be regarded as also being liable for corporate income tax on its activities in Thailand.  This will require the submission of CT returns.